AI Smart Contracts: Revolutionizing Web3 on the Internet Computer

The convergence of Artificial Intelligence (AI) and blockchain technology is creating unprecedented opportunities for innovation, particularly within the Web3 ecosystem. This article explores the transformative potential of AI smart contracts, specifically those built on the Internet Computer (ICP), and how they are poised to revolutionize the landscape of decentralized applications (dApps) and beyond. We'll delve into the core features that make these AI-powered contracts unique, examining their use cases and the challenges they address in the evolving digital world.

What are AI Smart Contracts?

AI smart contracts represent a Fusion of two powerful technologies: artificial intelligence and blockchain-based smart contracts. Traditional smart contracts are self-executing agreements written in code and stored on a Blockchain, automatically enforcing the terms agreed upon by the parties involved. AI smart contracts take this a step further by embedding AI models and algorithms directly into the contract's code.

This allows the smart contract to exhibit intelligent behavior, adapt to changing conditions, and make decisions based on real-time data.

The Internet Computer (ICP) provides a unique platform for deploying and executing these AI smart contracts. Unlike other blockchains that primarily focus on data storage and transaction verification, the Internet Computer offers a robust and scalable computing environment capable of running complex AI models. This fundamental difference opens up a world of possibilities for decentralized AI applications.

Key characteristics of AI smart contracts on ICP include:

• On-chain execution: AI models run directly on the Internet Computer's blockchain, ensuring transparency and immutability.
• Decentralized inference: AI inference (the process of making predictions or decisions using a trained model) is decentralized, reducing reliance on centralized AI providers.
• Autonomous operation: AI smart contracts can operate autonomously, triggering actions and making decisions without human intervention.
• Data-driven: These contracts can leverage real-world data to adapt and optimize their behavior, creating dynamic and responsive applications.

The Internet Computer: A Blockchain Like Cloud

Dominic Williams from DFINITY Foundation Talks about the capabilities of Internet Computer and its blockchain system. He emphasizes Internet Computer is a fully decentralized system

that is unlike blockchain systems for AI which use tokens for AI creation.

What sets the Internet Computer apart is its ability to host AI smart contracts directly on the blockchain. This design offers a remarkable improvement over previous systems. The internet computer differs from existing web 3, where online service is built on existing technology.

This paradigm shift empowers developers to create truly decentralized AI applications with enhanced security and transparency. The compute now exists on the blockchain.

The Internet Computer represents a third generation of blockchains, bringing everything onto the blockchain itself.

This means, in essence, that blockchain is beginning to play the role of cloud. But what is the implication of this fact? In the next section, we'll take a look at the features and advantages of such a network.

dashboard.internetcomputer.org is the website for the Internet Computer dashboard. If you visit this website you can find statistics that the system is processing at a rate of 330,000+ Ethereum transactions per Second! This shows how powerful this new system can be.

The strength of the DFINITY Team

The DFINITY foundation was founded in 2016 and one of the founders said that the organization drives what they call a ‘blockchain singularity’ for an open computer service that runs as quickly as any internet service.

The company’s team includes:

• The world’s largest team of famous cryptographers.
• Composed of those who formerly worked for Google, Facebook, or IBM
• Early blockchain community and Blockchain Maximalists

They have also produced 1600+ research Papers and 100,000+ academic citations.

Compute and Run AI algorithms on the blockchain

Most existing web 3 systems use smart contracts for tokens or defi logic. What if we could create and train the smart contract itself through the blockchain?

To truly utilize the power of the Internet Computer one must be able to:

• Perform live video matching
• Cross-reference information in drivers license
• Compare all the available data against W3C credentials

In traditional systems the hacker could simply break the traditional system and get access to all private data. But what if we changed how this was done so the smart contracts themselves had to handle all of this data?

Features of canisters smart contracts

Canisters are a type of smart contract on the Internet Computer that offers advanced capabilities compared to traditional smart contracts on other blockchains. These advanced smart contracts have incredible features that other smart contracts don't have. A few of these features are:

• Tamperproof operation
• Unstoppable operation
• Fully autonomous operation

Enhancing Ethereum Safety

AI smart contracts can play a crucial role in improving the security of Ethereum-based dApps.

Currently, Solidity engineers can manually audit the codes for safety and potential backdoors.

AI smart contracts are uniquely able to offer an AI Audit, which is far more efficient. They can be developed to automatically analyze smart contract code and identify potential vulnerabilities, such as reentrancy attacks, backdoors, and malware. This automated security analysis can significantly reduce the risk of exploits and ensure the safety of user funds.

By embedding AI-powered security audits directly into the smart contract execution process, developers can proactively identify and mitigate security risks, creating more robust and trustworthy dApps.

Autonomous KYC for DEX

Decentralized exchanges (DEXs) face the challenge of complying with regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. AI smart contracts offer a solution by enabling autonomous KYC processes. These AI-powered contracts can verify user identities, analyze transaction Patterns, and flag suspicious activity, all while preserving user privacy.

With AI-driven KYC, DEXs can operate within a regulatory-compliant framework without sacrificing the principles of decentralization and user autonomy. This is especially important, with the degen community wanting more and more options.

Intelligent Catalysts for enhanced company efficiency

AI smart contracts can act as intelligent catalysts to improve the efficiency and effectiveness of teams and organizations. These AI-powered assistants can analyze data from various sources, such as Slack messages, calendar entries, and emails, to identify patterns, provide insights, and automate tasks. For example, an AI smart contract could:

• Suggest optimal meeting times based on team members' availability and priorities.
• Identify bottlenecks and roadblocks in project workflows.
• Generate creative ideas for public relations campaigns.
• Provide real-time insights into key performance indicators (KPIs).